Reliance Industries on Friday said it will acquire 65 per cent stake in Indian Film Combine Pvt Ltd, which is building a drive-in theatre, hotel, retail mall and club on a 12-acre plot in Mumbai, for Rs 11.05 billion.
Reliance Industrial Investments and Holdings Ltd, a wholly owned subsidiary of RIL, will acquire stakes in IFC, which was incorporated in 1942, the company said in a regulatory filing.
"RIIHL will be acquiring 65 per cent of current paid-up equity share capital of IFC from the existing shareholders for Rs 1,105 crore (20 per cent from Mauritian arm of Xander Group, Inc based in USA for Rs 3.40 billion and 45 per cent from entities belonging to the promoter group of RIL for Rs 765 crore)," it said.
The remaining 35 per cent of IFC continues to be held by the Maker Group.
The acquisition is expected to be completed by May 31, 2018.
IFC is setting up a drive-in theatre and hospitality precinct comprising a hotel, a retail mall and a club, built on approximately 12 acres of land in Bandra Kurla Complex (BKC), Mumbai.
RIL is currently building a convention centre, a retail mall and office space at BKC, Mumbai. "Together with the aforesaid IFC project, RIL will create the city's most attractive retail and entertainment destination which will complement its world-class convention centre," it said. "RIL would be able to derive commercial and operational synergies to enhance its shareholder value."
The company said the acquisition from the promoter group entities of RIL is on arms-length basis and at the same valuation at which equity shares of IFC are being purchased from the Xander Group.
The valuation has also been independently confirmed by Jones Lang LaSalle Property Consultants (India) Pvt Ltd (JLL) and Ernst & Young Merchant Banking Services Pvt Ltd (E&Y), it added.